To be among the best developers of sports and fashion brands · 2017-09-07 · Cottonfield InWear & Matinique Designers Remix (51% ownership) Companys IC Companys Canada Tiger of

Corporate presentation

To be among the best developers of sports and fashion brands

March 2012

IC COMPANYS • PAGE 2

Index

1 INTRODUCTION

2 HISTORY

3 ORGANISATION

4 BRANDS

5 CORPORATE STRATEGY

6 KNOWLEDGE CENTRE

7 CORPORATE SHARED SERVICES

8 CORPORATE RESPONSIBILITY

9 FINANCIALS


BRANDS• 11 Scandinavian sports and fashion brands

SIZE• Revenue DKK 3.9b and employees 2,344

SOURCING• Offices in China, Hong Kong, India and Romania

DISTRIBUTION• Own retail, outlets, e-commerce, franchise and wholesale

AROUND THE WORLD• More than 450 stores and 11,000 wholesale selling points in

more than 40 countries

Note: All numbers are from the annual report 2010/11

One of the top 5 largest sports and fashion companies in the north

1Introduction


CARLI GRY1948: Carli Gry is founded

1973: Klaus Helmersen takes

over the company

1974: Jackpot is launched

1986: Cottonfield is launched

1996: Listed on the Copenhagen

Stock Exchange

1998: Peak Performance

acquisition

2001: IC Companys is formed

through merger

INWEAR GROUP

1969: InWear is founded

1973: Matinique is launched

1973: First Danish fashion brand

to set up Asian production

1974: First subsidiaries in

Sweden and Norway

1980: First own retail store in

Copenhagen

1986: Part Two is launched

1996: Listed on the Copenhagen

Stock Exchange

2001: IC Companys is formed

through merger

Proud heritage in Scandinavian fashion

2History


Portfolio strengthened by acquisitions and start-ups History

2001/2002 2002/2003 2003/2004

ACQUISITION

START-UP


INDUSTRY EXPERIENCE• More than 60 years in total

– sports, fashion and fast moving consumer goods

FRAMES AND PRINCIPLES• Generating growth through frames and principles

CRISIS MANAGMENT• Crisis management securing profitability and strength

STABILITY• Cash flow management providing stability and risk reduction

Experienced management team with high execution power

3Organisation

Niels Mikkelsen, CEO Chris Bigler, CFO Anders Cleemann, EVP Peter Fabrin, EVP


Separate brand organisations with full responsibility of own value chain Organisation

Chief ExecutiveChief ExecutiveChief ExecutiveChief ExecutiveOfficerOfficerOfficerOfficer

Corporate Business Corporate Business Corporate Business Corporate Business DevelopmentDevelopmentDevelopmentDevelopment

Chief FinancialChief FinancialChief FinancialChief FinancialOfficerOfficerOfficerOfficer

FinanceFinanceFinanceFinance

ITITITIT

Investor RelationsInvestor RelationsInvestor RelationsInvestor Relations& Communication& Communication& Communication& Communication

LegalLegalLegalLegal

LogisticsLogisticsLogisticsLogistics

HumanHumanHumanHumanResourcesResourcesResourcesResources

CorporateCorporateCorporateCorporateResponsibilityResponsibilityResponsibilityResponsibility

GlobalGlobalGlobalGlobalSourcingSourcingSourcingSourcing

ExecutiveExecutiveExecutiveExecutiveVice PresidentVice PresidentVice PresidentVice President

ExecutiveExecutiveExecutiveExecutiveVice PresidentVice PresidentVice PresidentVice President

Peak Peak Peak Peak PerformancePerformancePerformancePerformance

CottonfieldCottonfieldCottonfieldCottonfield

InWear & InWear & InWear & InWear & MatiniqueMatiniqueMatiniqueMatinique

Designers RemixDesigners RemixDesigners RemixDesigners Remix(51% ownership)

CompanysCompanysCompanysCompanysIC CompanysIC CompanysIC CompanysIC Companys

CanadaCanadaCanadaCanada

Tiger of SwedenTiger of SwedenTiger of SwedenTiger of Sweden

By Malene BirgerBy Malene BirgerBy Malene BirgerBy Malene Birger

JackpotJackpotJackpotJackpot

Part TwoPart TwoPart TwoPart Two

Saint TropezSaint TropezSaint TropezSaint Tropez Soaked in LuxurySoaked in LuxurySoaked in LuxurySoaked in Luxury

Note: Brands include own value chain (design, sourcing, product management, marketing, wholesale, retail, franchise, e-commerce)

ExecutiveManagement


Developing 11 sports and fashion brands with a great potentialBrands

4


The brand portfolio– different priorities for different brandsBrands

BRANDS IN MULTIPLE SEGMENTS• Affordable Luxury with focus on growth and internationalisation

• Mid Market and Fast Fashion with focus on core markets

Sport/lifestyle Sport/lifestyle Sport/lifestyle Sport/lifestyle CasualCasualCasualCasual JeansJeansJeansJeansContemporaryContemporaryContemporaryContemporary FormalFormalFormalFormal

LuxuryLuxuryLuxuryLuxury

(High price)

Affordable Affordable Affordable Affordable

Luxury Luxury Luxury Luxury (Upper mid price)

Mid MarketMid MarketMid MarketMid Market(Mid price)

Fast FashionFast FashionFast FashionFast Fashion(Low price)


PEAK PERFORMANCE• Founded 1986 with roots in skiing

• Revenue DKK 977m

TIGER OF SWEDEN• Founded 1903 on a strong made-to-measure

tradition


BY MALENE BIRGER• Founded 2003 based on design-driven passion


DESIGNERS REMIX• Founded 2002 on minimalistic elegance

• Revenue DKK 91m

Brands in Affordable LuxuryBrands



JACKPOT• Founded 1974 with casual and colourful styles


COTTONFIELD• Founded 1986 on comfortable and casual

menswear


PART TWO• Founded 1986 working with sensual vs. raw


INWEAR & MATINIQUE• Founded 1969 & ‘73 with roots in urban

living

• Revenue DKK 404m & 289m respectively

Brands in Mid MarketBrands



SAINT TROPEZ• Founded 1986 on young, independent femininity


SOAKED IN LUXURY• Founded 2005 based on a vibrant, international

design

• Revenue DKK 74m

COMPANYS• Franchise concept based on 6 own female

brands

• 31 stores in total

Brands in Fast Fashion and our Companys conceptBrands



FREEDOM WITHIN THE FRAMEWORK• Respect of each individual brand entrusting it with full ownership

of the value chain

• Best practice sharing in key areas of the value chain

• Corporate Shared Services with targeted operational

responsibilities

HIERARCHY OF SYNERGIES1. Knowledge sharing through execution of 7 business disciplines

2. Targeted operational synergies based on brands needs

3. General operational cost synergies across all brands

STRATEGIC FOCUS AREAS• Building strong brands

• Having a focused market approach

• Increasing controlled distribution

• Optimising our processes and value chain

• Practising world class leadership

Vision: “to be among the best developers of sports and fashion brands”

5Corporate strategy


Mission: “to build successful brands by uniting business excellence with creativity and innovation”

KNOWLEDGE CENTER• Retail/franchise

• Wholesale

• E-commerce

• New markets

• Sourcing

• Collection development

• Marketing/brand building

CORPORATE SHARED SERVICES• Sourcing, Logistics, IT

• Finance, Legal, HR

• Corporate Responsibility

Corporate strategy


Our knowledge centre facilitates a systematic and iterative knowledge sharing process

6Knowledge centre


BRAND

KNOWLEDGE CENTRE

Implementation Implementation Implementation Implementation

and adaptation of and adaptation of and adaptation of and adaptation of

best practicesbest practicesbest practicesbest practices

Knowledge Knowledge Knowledge Knowledge

sharing and sharing and sharing and sharing and

innovationinnovationinnovationinnovation

Defining best Defining best Defining best Defining best

practice practice practice practice


‘Frames and principles’ are catalogues of best practice guidelines implemented throughout the organisationKnowledge centre

FRAMES AND PRINCIPLES

• A catalogue of best practice

principles for each of the 7

disciplines

• All catalogues have a

standardised structure:

– Discipline vision

– Key levers

– Focus areas

– Frames and principles

DEFINITION


Shared Services functions are based on value creation and deliver services based on brands’ needs

7Corporate Shared Services


AN EFFICIENT SERVICE PLATFORM• From 55% of total cost and 1,800 employees…

• …to 15% of total cost and 400 employees


WE SUPPORT THE 10 PRINCIPLES OF THE UN GLOBAL COMPACT• Based on internationally adopted declarations and conventions

on human rights, labour rights (People), environmental protection

(Planet) and anti-corruption (Profit)

INTEGRATED THROUGHOUT THE ORGANISATION• Responsibility for issues and targets are assigned to the relevant

internal functions for them to take action

We believe in integrating corporate responsibility in all parts of our organisation

8Corporate responsibility

PEOPLE PLANET PROFIT


BEST REVENUE AND PROFIT EVER IN 2010/11• Revenue of DKK 3.9b and EBIT of DKK 321m

CYCLIC EARNINGS BUT STEADY CASH FLOW• Strong operating cash flow averaging DKK 314m last five years

• Investments to be kept around 3% of annual revenue

WORKING CAPITAL IN CONTROL• Expected not to exceed 12% of annual revenue

STRONG FINANCIAL POSITION WITH LOW NET DEBT• Net debt of DKK 311m corresponding to 0.7 times EBITDA in

2010/11

• Net debt target of zero and limit of 3 times EBITDA

CONTINUED DIVIDENDS TO OUR SHAREHOLDERS• 30% of the net profit to be distributed as dividend

A financially strong company with solid cash flow

9Financials


Financial guidelines to secure steady high cash flowsFinancials

ASSET LIGHT• Maximises strategic manoeuvrability and

secures a steady high cash flow

FIXED TO VARIABLE COSTS• Secures stable profitability in a volatile

economic environment

PRIORITISING INVESTMENTS• Maximises returns securing future access to

capital

HIGH INVENTORY TURNOVER• Reduces costs by freeing up capital for other

purposes and ensuring continuous flow of in-

season products

STRICT CREDIT CONTROL• Frees up capital for other purposes and

ensures a healthy customer base



Guidance FY 2011/12Financials

CHALLENGING MARKETS AND HIGH UNCERTAINTY EXPECTED TO CONTINUE• Significant change in consumer spending

• Continuation of campaign activities to secure revenue

• Wholesale market under high pressure

REVENUE IN THE RANGE OF DKK 3.7 – 3.8B

EBIT EXPECTED TO BE POSITIVE FOR H2 2011/12• Risk of double-digit loss in DKKm for H2 2011/12 if market conditions

deteriorate

FREE CASH FLOW EXPECTED TO BE POSITIVE FOR H2 2011/12 • Under current market conditions

INVESTMENTS IN THE RANGE OF DKK 80 – 100M


Documents

To be among the best developers of sports and fashion brands · 2017-09-07 · Cottonfield InWear & Matinique Designers Remix (51% ownership) Companys IC Companys Canada Tiger of